SINGAPORE: Online cashback portal ShopBack laid off 195 workers, or 24 per cent of the group's headcount, in what it said was a push to become more focused and self-sustainable.
The cuts were announced by ShopBack CEO Henry Chan during a town hall meeting on Tuesday (Mar 19), with those affected notified within an hour of the event ending.
"I made the mistake of pursuing too many directions as a company and expanding our team too rapidly. I take full responsibility for the decisions that have led to this situation," said Mr Chan in a message posted on the company's website.
ShopBack, also known by its legal name Ecommerce Enablers, offers cashback for purchases made through affiliated merchant programmes. It also provides coupons and voucher codes for customers.
Mr Chan added that all departures will be kept to the same day on Tuesday "out of respect and to ease transition for departing team members".
"Today is a difficult day for all ShopBackers, and especially so for our Muslim ShopBackers who are also fasting during this period. We recognise the need for everyone to have the time and space to process this news," he said, as he announced a day off for the remainder of Tuesday.
In his message, Mr Chan said that sustainable growth remained a challenge despite efforts to reduce costs since 2022.
"Over the past few months, we narrowed our focus, identified critical and durable problem spaces to excel in over the longer term, and established a more effective operating rhythm to keep us on track," he said.
"It then became clear to me that a leaner and more agile team – significantly different from our current organisational structure today – will be needed for us to succeed."
Retrenched employees will be given a package that includes pay for at least two months of their notice period, as well as a month of severance pay for every year of service or based on local statutory guidelines, whichever is higher.
A bonus equal to a month's pay will also be paid out, which will be prorated for those who have been with the company for less than a year. Unused leave can also be encashed.
Those on employment visas, meanwhile, will see their repatriation costs covered, including airfare and a budget for moving expenses.
Career transition support and extended healthcare coverage until the end of June are among the other features in the package.
"Undoubtedly, this is one of the hardest decisions I've had to make in our company’s history," said Mr Chan .
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The cuts were announced by ShopBack CEO Henry Chan during a town hall meeting on Tuesday (Mar 19), with those affected notified within an hour of the event ending.
"I made the mistake of pursuing too many directions as a company and expanding our team too rapidly. I take full responsibility for the decisions that have led to this situation," said Mr Chan in a message posted on the company's website.
ShopBack, also known by its legal name Ecommerce Enablers, offers cashback for purchases made through affiliated merchant programmes. It also provides coupons and voucher codes for customers.
Mr Chan added that all departures will be kept to the same day on Tuesday "out of respect and to ease transition for departing team members".
"Today is a difficult day for all ShopBackers, and especially so for our Muslim ShopBackers who are also fasting during this period. We recognise the need for everyone to have the time and space to process this news," he said, as he announced a day off for the remainder of Tuesday.
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In his message, Mr Chan said that sustainable growth remained a challenge despite efforts to reduce costs since 2022.
"Over the past few months, we narrowed our focus, identified critical and durable problem spaces to excel in over the longer term, and established a more effective operating rhythm to keep us on track," he said.
"It then became clear to me that a leaner and more agile team – significantly different from our current organisational structure today – will be needed for us to succeed."
Retrenched employees will be given a package that includes pay for at least two months of their notice period, as well as a month of severance pay for every year of service or based on local statutory guidelines, whichever is higher.
A bonus equal to a month's pay will also be paid out, which will be prorated for those who have been with the company for less than a year. Unused leave can also be encashed.
Those on employment visas, meanwhile, will see their repatriation costs covered, including airfare and a budget for moving expenses.
Career transition support and extended healthcare coverage until the end of June are among the other features in the package.
"Undoubtedly, this is one of the hardest decisions I've had to make in our company’s history," said Mr Chan .
Continue reading...